Refinance Trucks, Trailers & Forklifts to Free Up Working Capital — A Practical Guide for UK Logistics Firms

Short answer: Yes — in most cases you can refinance owned trucks, trailers and forklifts to release working capital. This page explains the main options (asset refinance, sale & leaseback, novation/HP refinance), what lenders look for, pros & cons, typical costs and a practical step-by-step checklist so your logistics business can act quickly. Ready to compare options? Get Quote Now — Free Eligibility Check

Quick answer

Yes — most logistics businesses can refinance owned trucks, trailers and forklifts to free up working capital, provided the assets have demonstrable value and you can supply ownership and maintenance documentation. Common reasons firms refinance include covering short-term cashflow gaps, funding seasonal peaks, bidding for a large contract or financing depot upgrades. Options range from secured asset loans and chattel mortgages to sale & leaseback deals that convert asset value into immediate cash while letting you keep using the equipment.

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What does “refinancing” a truck, trailer or forklift mean?

Refinancing an asset means replacing an existing funding arrangement or using the asset as security to raise new funds. Key approaches:

• Asset refinance (secured business loan) — a lender advances funds secured against a vehicle or plant. You keep ownership (unless otherwise arranged) and repay over a set term.
• Sale & leaseback — you sell the asset to a funder and lease it back. This releases capital immediately but creates ongoing rental costs.
• Refinance / novation of existing finance — you move existing finance to another lender, often to reduce monthly payments or consolidate debt.
• Chattel mortgage / hire purchase refinance — structured finance where the asset is security; refinancing can include paying out the original lender and replacing it with a new agreement.

Underwriting focuses on market value, age, mileage, maintenance records and clear title. Example: a 5‑year‑old 26‑tonne lorry with full service history and low mileage might secure 50–70% of its market value as refinance collateral (figures vary by funder).

Common ways to release capital from fleet assets

Asset refinance (secured loan)

What it is: A business loan secured against the vehicle or plant value. Best for: firms wanting a cash lump sum while keeping ownership.

Benefits: Quick access to cash, flexible terms, you keep using the asset. Limitations: Lenders will limit LTV and set term lengths based on asset life.

Sale & leaseback

What it is: Sell the asset to a funder and lease it back on a rental agreement. Best for: businesses that need larger immediate amounts and want to remove capital tied up on the balance sheet.

Benefits: High immediate cash, off‑balance alternatives depending on accounting treatment. Limitations: Ongoing rental cost, possible higher long‑term cost than ownership.

HP refinance / novation

What it is: Replacing an existing hire purchase with a new agreement (often with different terms). Best for: refinancing existing finance to reduce payments or consolidate multiple agreements.

Chattel mortgage refinance

What it is: A loan secured on the asset title; refinancing means paying out the old mortgage and switching to a new lender, often to take advantage of better terms. Best for: larger fleets with equity in assets.

For a no‑obligation assessment, Start Your Enquiry (2 mins).

Are trucks, trailers and forklifts eligible? What lenders look for

Most lenders look at the following:

• Proof of ownership — V5, sales invoices or title documents.
• Age, mileage and condition — younger, low‑mileage trucks and recent forklifts usually secure higher LTVs.
• Service & maintenance history — full service logs, MOTs and planned maintenance reduce perceived risk.
• Outstanding finance — lenders check for existing liabilities and settlement figures.
• Usage & operator credentials — O‑licence, type of operation (long‑haul vs local), and insured usage.
• Business financials — recent accounts show ability to service repayments.

Indicative lender thresholds: forklifts and modern trailers can achieve higher LTVs (often 60–85% depending on age). HGVs are judged more strictly; many funders prefer vehicles up to a certain age (often 7–10 years), though specialist lenders consider older vehicles at adjusted LTVs.

If you run a mixed fleet you can usually refinance multiple asset types in one package — discuss with a broker to optimise terms. If you’d like to see typical industry lenders and products, check our logistics industry page about logistics business loans.

Pros and cons

Pros

• Immediate cash to free working capital without halting operations.
• Keeps vehicles in service (sale & leaseback or refinance usually allows continued use).
• Can be faster than unsecured borrowing if assets value is clear.
• Useful for seasonal peaks, contract delivery bids or depot investment.

Cons

• Potentially higher total cost than holding ownership long‑term (leaseback rentals, interest and fees).
• Ongoing rental/repayment obligations affect future cashflow.
• Accounting and tax treatment varies — may affect balance sheet differently.

When refinancing is smart: a short-term cash crunch, funding quick growth or keeping fleet operational through a contract. Consider selling permanently if you’re reducing fleet size long-term.

Steps to refinance — a practical step‑by‑step checklist

1. Gather paperwork: V5/title, outstanding finance statements, insurance, service logs, MOTs, operator licence, recent business accounts.
2. Get a valuation and inspection: funders will arrange or accept independent valuations; expect physical inspections for higher-value assets.
3. Compare offers: look at APR, term length, fees, early settlement charges and any residual values on leases.
4. Check tax/accounting impacts with your accountant (lease vs loan treatment, VAT on rentals).
5. Accept the best offer and complete contracts — lenders/brokers will settle any existing finance and release funds.

What a broker does for you: negotiates with specialist funders, speeds up valuations and ensures offers match your cashflow goals.

Quick checklist (documents you’ll need):

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Typical costs, rates and terms — what to expect

Typical elements:

• Loan-to-value (LTV): varies by asset — forklifts higher, older HGVs lower (indicative ranges: 40–85%).
• Terms: from 12 months up to the expected useful life of the asset (often 3–7 years for trucks; shorter for older assets).
• Rates & fees: depend on asset, business credit and lender; specialist asset finance often has competitive terms but expect fees for valuation and administration.
• Minimum sizes: UK Business Loans typically helps businesses seeking £10,000 and upwards.

Because rates vary widely, it pays to compare offers using a broker or introducer to secure the most suitable deal.

Accounting, tax & regulatory points

High-level guidance:

• Sale & leaseback may change balance-sheet treatment — consult your accountant about operating vs finance leases.
• VAT: lease payments often include VAT; VAT recovery depends on your business use and VAT status.
• Capital allowances: owning assets vs leasing affects capital allowances claims.
• Enquiry process: submitting a quick enquiry is not an application and will not affect your credit file; lenders may perform checks later if you proceed.

Always check specifics with your accountant — tax treatment can materially affect the best option for your business.

Case studies

Case study 1 — Seasonal cashflow boost (anonymised)

A regional haulage operator used a sale & leaseback on five trailers and two 3‑year‑old tractors to release £100,000 ahead of peak season. Outcome: met increased fuel and driver costs, won two new contracts and repaid seasonal borrowing the following quarter.

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It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.

Case study 2 — Warehousing & handling upgrade

A pallet distributor refinanced three forklifts via asset refinance to fund new racking and automation. Outcome: £35,000 released at a competitive rate; productivity increased and payback achieved in 10 months via efficiency gains.

How UK Business Loans helps

UK Business Loans is an introducer that connects logistics firms with specialist lenders and brokers. Our simple 2‑minute enquiry collects the essentials and helps us match you to partners most likely to offer competitive terms. Process:

1. Complete the short enquiry form (it’s not an application).
2. We match you with lenders and brokers who specialise in fleet and asset finance.
3. Receive quotes and choose the best solution — no obligation to proceed.

Submitting an enquiry will not affect your credit score. We are not a lender and we do not provide regulated financial advice. Contracts and decisions are between you and the chosen lender/broker.

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Frequently asked questions

Can I refinance a truck I still owe money on?

Often yes — refinancing typically involves paying out the existing finance. The new funder will request settlement figures and may require a novation or settlement from you.

How much can I expect to release from a sale & leaseback?

Commonly 60–85% of market value depending on asset type and condition. Exact figures require a valuation.

Will refinancing affect my credit score?

Filling our enquiry form does not affect your credit score. Lenders may perform credit checks later if you choose to apply.

Are older trucks accepted?

Yes — some specialist lenders accept older vehicles though at lower LTVs and adjusted terms. Forklifts and recent trailers are often easier to refinance.

Can I refinance a mixed fleet?

Yes — many funders offer facilities covering trucks, trailers and plant in a single package. A broker can bundle assets for better terms.

How long does it take?

Simple cases can complete in days; complex or multi‑asset deals may take a few weeks. Quick valuations speed up the process.

Final summary & Get your free quote

Refinancing owned trucks, trailers and forklifts is a practical way to unlock working capital quickly. Options include secured asset loans, sale & leaseback and refinancing existing agreements — each with different costs and accounting effects. If you want to explore the best options for your fleet, complete our short enquiry and we’ll match you with specialist lenders and brokers who can provide tailored quotes.

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Disclosure: UK Business Loans is an introducer — we do not lend money or provide regulated financial advice. We connect businesses with lenders and brokers so you can compare options. Completing our enquiry is free and not an application; it will not affect your credit score. All contracts are between you and the lender/broker you choose.

1. Can I refinance trucks, trailers or forklifts I still owe money on? — Often yes; specialist lenders can pay out existing finance as part of a refinance or novation depending on your current agreement and any early‑settlement charges.
2. How much cash can a sale & leaseback release from my fleet? — Sale & leaseback typically releases around 60–85% of market value depending on asset type, age and condition following an independent valuation.
3. Will submitting an enquiry through UK Business Loans affect my credit score? — No — our short enquiry is not a loan application and will not impact your credit file, though lenders may run checks later if you proceed.
4. Which fleet assets are eligible for asset finance or refinance? — Most trucks, trailers, forklifts and plant equipment can be refinanced, subject to proof of ownership, service history, age, mileage and any outstanding finance.
5. How long does vehicle or fleet refinancing take from enquiry to funds? — Simple asset refinances or sale & leasebacks can complete in days to a few weeks, while multi‑asset or HP settlement cases may take longer.
6. What paperwork do I need to start a fleet finance enquiry? — Be ready with proof of ownership (V5/invoice), outstanding finance statements, service/MOT logs, operator licence, insurance and recent business accounts.
7. What loan‑to‑value (LTV), rates and terms should I expect for refinancing vehicles? — LTVs vary by asset (indicative 40–85%), terms typically range from 12 months up to the asset’s useful life (often 3–7 years), with rates and fees set by lender risk and business credit.
8. Can I refinance a mixed fleet of trucks, trailers and forklifts in one deal? — Yes — many funders and brokers will package mixed fleets into a single facility to optimise LTV and repayment terms.
9. How will sale & leaseback or refinancing affect my accounting, VAT and tax positions? — Treatment varies (operating vs finance lease, VAT on rentals, capital allowances), so always discuss the specific accounting and tax impact with your accountant.
10. How does UK Business Loans help me find the right vehicle or fleet finance? — We act as a free introducer that matches your non‑binding enquiry to specialist UK lenders and brokers who can provide tailored quotes and manage valuations and settlements.